The Indian mutual fund industry has expanded significantly, accompanied by rising financial literacy, investor awareness and assets under management. However, direct public participation in the stock market remains limited. As the regulator, the Securities and Exchange Board of India is responsible for protecting investors and addressing regulatory gaps. Asset management companies disclose scheme information documents. Factsheets are particularly important for making investment decisions and comparing mutual funds. This article identifies gaps in scheme- and AMC-level performance reporting and proposes greater uniformity and standardisation of factsheets to enhance transparency and investor confidence.

The author sincerely thanks the reviewer(s) for their valuable comments and constructive suggestions, which have helped improve the manuscript. 

To protect investors’ interests, ensure transparency, and enhance the integration of capital markets, the Securities and Exchange Board of India (SEBI) plays a critical role in India. The country’s growing middle class and its relatively low participation in the stock market indicate considerable potential for the expansion of the mutual fund industry and capital markets. Rising financial literacy, greater awareness and the ease of investing through digital platforms have contributed to the rapid growth of the mutual fund industry. Assets under management (AUM) increased from approximately ₹23.8 lakh crore in 2018–19 to ₹53.4 lakh crore in 2023–24 (SEBI 2024a), and further to ₹67.28 lakh crore in October 2024 (Economic Times 2024a). In July 2025, equity mutual fund inflows alone amounted to ₹42,720 crore ($4.91 billion), while total AUM reached a record ₹75.36 lakh crore (Rajeswaran 2025). Systematic investment plans (SIPs) have also expanded, with monthly contributions increasing from ₹5,000 crore in 2019 to ₹25,000 crore in 2024 (Economic Times 2024b). The number of mutual fund folios increased from 11 crore to 21.65 crore during the same period. In July 2025, SIP contributions reached a record ₹28,464 crore ($3.25 billion) (National Stock Exchange of India 2025). Equity investments have also contributed ₹60 lakh crore to household wealth (National Stock Exchange of India 2025). 

The number of Indians investing in mutual funds and the stock market remains relatively low, although it is growing rapidly. According to SEBI (2024a), around 4.5 crore investors were registered in 2023–24, against a population of approximately 140 crore. By June 2025, however, the number of demat accounts (securities accounts in India) had reached 200 million (Rajeswaran 2025). Individuals owned 18.5% of the $5.1 trillion equity market, representing more than a fivefold increase since 2020 (National Stock Exchange of India 2025). This expansion reflects rising retail participation, improved market performance and investor awareness, and the ease of investing through digital platforms. Younger investors, particularly those aged 25–35 and Gen Z, are increasingly participating in mutual funds through online investment platforms. Despite this growth, participation remains low compared with developed-country stock markets.

India is aspiring to become a developed economy over the next 25 years. In a developed economy, capital markets play an important role in mobilising investment. With the expansion of the stock market and mutual fund industry, regulations need to be strengthened and simplified to enable retail investors to understand them and invest in mutual funds without any ambiguity. This article identifies gaps in the regulations issued by the SEBI at the scheme and Asset Management Companies (AMCs) levels and proposes greater standardisation of regulatory and performance reporting requirements.

Gaps in Current Disclosure Practices by AMCs

In India, AMCs disclose information through mutual fund factsheets, Key Information Memoranda and Scheme Information Documents (SIDs), prepared in accordance with SEBI regulations. However, SEBI has not standardised the format of factsheets, which are an important source of information for investors. To illustrate the differences in disclosure practices, the factsheets of five mutual funds—ICICI Prudential Mutual Fund, HDFC Mutual Fund, Nippon India Mutual Fund, Quant Mutual Fund, and SBI Mutual Fund—are examined (ICICI Prudential 2026; HDFC Mutual Fund 2026; Nippon India Mutual Fund 2026; Quant Mutual Fund 2026; SBI Mutual Fund 2026). The inconsistencies in the factsheet disclosures are summarised in Table 1........

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